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"Active" 2010 Q2 Boosts Senomyx Revenue
Posted: August 6, 2010
Senomyx (San Diego) has reported second quarter revenue of $5.7 million, up from $3 million during the same period, 2009. Revenues for the first half of 2010 totaled $13.4 million, up from $6.5 million in 2009. As of June 30, 2010, the company had cash, cash equivalents and short term investments of approximately $55.4 million. Research and development expenses, including stock-based compensation expense, were $7.1 million for the second quarter of 2010, compared to $7.8 million for the second quarter of 2009. Research and development expenses, including stock-based compensation expense, were $13.5 million for the six months ended June 30, 2010, compared to $15.4 million for the six months ended June 30, 2009.
"Due to the receipt of $7.5 million from PepsiCo related to the June letter agreement, we are revising our cash utilization guidance for 2010 from a range of $14 million to $16 million to a range of $6 million to $8 million, said vice president and CFO Tony Rogers. "At this time, we are not revising our other financial guidance metrics; however, we will update our financial guidance as necessary if we enter into a definitive agreement with PepsiCo."
For the full year 2010, the company anticipates total revenues of $20 million to $24 million, total expenses of $42 million to $44 million, and a net loss of $18 million to $21 million.
"The second quarter of 2010 has been very active for Senomyx," said CEO Kent Snyder. "During the quarter we were informed that the European Food Safety Authority (EFSA) has provided a 'favorable opinion' for Senomyx's savory flavor ingredients, S336 and S807 [intended to reduce or replace added monosodium glutamate (MSG) in foods and beverages], which means that no further evaluation is required. The successful conclusion of the evaluation is a key step toward receiving an approval to use these ingredients in the European Union. Nestlé ... is currently conducting marketing activities in the Pacific Rim, Latin America, and Africa with both new and reformulated established products that incorporate Senomyx's savory flavor ingredients. Approval in Europe could create a new market opportunity for Nestlé. In addition, Ajinomoto, a leading global manufacturer of food and culinary products, is introducing products that contain a Senomyx flavor ingredient in Asia and another key region. Ajinomoto has increased the number of products launched and has also selected several new Senomyx flavor ingredients for potential marketing. Another Senomyx partner, Firmenich, is continuing commercial activities for Senomyx's extremely effective enhancer of the high-intensity sweetener sucralose (S2383)."
- The company has also reported progress on its S6821 bitter blocker.
- Senomyx owns or holds the exclusive license for 207 patents, with 362 patents pending, covering taste receptor sequences and functions, screening assays, new flavor ingredients, and product applications.
- Senomyx has received a GRAS (Generally Recognized As Safe) regulatory designation for S6973, the company's sucrose enhancer, allowing it to be used in the United States and in elsewhere other countries for most food products and beverages such as flavored milk, and ready-to-drink and instant coffee and tea.
- Additional advances with the sweet enhancer program include the identification of a new family of sucrose enhancers with distinct physical properties that may be advantageous for a broader range of beverages and other product applications.
- The company identified the first flavor ingredients that demonstrate a statistically significant amplification of the sweet taste of fructose.
- Taste tests have demonstrated that S6821 and S0812, alone or in combination, can provide statistically significant reductions in the bitterness of a variety of product prototypes and food ingredients including tea, cocoa, menthol, various proteins, and the sweeteners rebaudioside-A (a derivative of the stevia plant), acesulfame potassium (Ace-K), and saccharine.
- Senomyx discovered SNMX-29, a protein with characteristics that indicate it could be involved in human salt taste perception, and identified samples that are active in screening assays based on this protein.
- Senomyx has discovered new cooling flavors that demonstrated a taste proof-of-concept and displayed cooling properties that exceed those of commonly used agents.